Telecoms Provider Nippon NTT Unveils Blockchain Innovation for Smart Contract Storage
Japan's telecom giant Nippon Telegraph and Telephone (NTT) is set to unravel a new blockchain tech for contractual agreements and their storage. In an official patent filed with the U.S Trademark and Patent Office (USPTO), the telecommunications firm details the potential application of blockchain technology for a new contract agreement system.
The patent publication outlines a system that would use blockchain technology to encrypt the contracts, and store them.
Summary Of The Innovation
NTT's patent publication suggests that the current use of blockchain for contracts lacks an efficient system since the transactions only contain the electronic signature of one party (sender).
“In contract making among two or more parties, on the other hand, a contract cannot be concluded by the unilateral issuance of the contract but must be agreed on by all the parties who are involved in the contract. However, each transaction forming a blockchain contains only the electronic signature of the sender, and the evidence of contract agreement by the receiver is not left in the transaction.”
The patent further suggests that the receiver's evidence is missing from the transaction and a possible way to solve this would mean giving both parties electronic signatures.
“A simple, possible way to solve this problem is to, for example, include the electronic signatures of all the involved parties in one transaction. Virtual currency employs a mechanism called multi-signature, which can create an address requiring a certain number of electronic signatures or more to approve a transaction.”
According to Nippon Telegraph and Telephone the solution makes up a simple and efficient method that would maintain the mode of one electronic signature per transaction while ensuring credibility. All entities part of an agreement would link their operations to the principal virtual contract transaction.
The patent further explains the transactions will go back to the contract issuing party to close off the chain of operations. NTT's system is also set to include an agreement verification apparatus that ensure safety and security by comparing the public keys in use for the electronic signature.
Nippon Telegraph and Telephone Background
Nippon Telegraph and Telephone is one of the largest telephone operator companies in the world with a market valuation of almost$ 94.2 billion. In a past press release, the telecom giant did highlight that emerging technologies such as blockchain would make information and communication technology increasingly complex. The surface of the patent proposal is evidence of NTT's goal to benefit significantly from blockchain.